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Configuring Currency and Tax

Former Member
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Hi everybody.....

Could you please tell me the steps to configure currency and tax in the system

I tried configuring tax. However was getting error with respect to tax jurisdiction.

Could sombody help me on this...



Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Following are the steps for tax fonfiguration:-

1.Check W.Tax Countries

2. Define Official Witholding Tax Codes

3. Define Business Place (If more than one TAN No.)

4. Assign factory calendar to Business Place

5.Define W.Tax type for Invoice Posting and Payment Posting

6. Define W.Tax Code for Invoice Posting and Payment Posting

7.Check Receipiant Types

8. Maintain Tax due dates

9. Maintain surcharge calculation method

10.Maintain Surcharge rates

11.Assign tax types to company code

12. Create GL Account - Withholding tax

13. Assingment of GL Account to Withhold tax

14. Maintain Document types for challan updatation

15.Maintain Number ramges group (SAP script forms)

16.Assign Number ranges to number group

17. Maintain number ranges

18. Assign TDS Number in Global Parameters

19. Assign Tax codes in Vendor Master

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Answers (1)

Answers (1)

Former Member
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A currency is SAP is donated by 3 characters like INR for indian rupee.

A currency is defined in SAP using the IMG Path

General Settings--

> Currencies--

> check exchange rate

Different types of currency are

Local Currency: Defined to mention in which currency you will be maintaining the accounts. It is also called as Comapny Code Currency.

Group Currency: It is defined at client level.

Account Currency: Defined in which an account is maintained.


SAP use Condition method to calculate taxes. It make use of Tax Codes for calculating the quantity of tax.

Tax Code is the starting point in the tax calculation. It is country specific. Every country has a country specific tax procedure defined in the standard system. The system use the tax code to verify the 1) Tax type 2) Amount of Tax 3) GL account for posting.

Tax Code is assigned to a Tax Procedure which is tagged to a GL master record.

Tax Procedure contains the following

STEPS : determine the sequence of the lines within the procedure

Condition Type: How the tax calculation model will work.

Reference steps: From where system will obtain the amount

Account & Processing Keys Provide the link between tax procedure and GL account. This will help in Automatic tax account assignment.

Hope you will find this useful.


Nitin Aggarwal

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